During Russia’s invasion of Ukraine, the role of cryptocurrencies such as bitcoin (BTC) has taken centre stage, with the goal of assisting both refugees in a humanitarian catastrophe and Russian oligarchs trying to avoid the sanctions that the West is attempting to suffocate them with. In light of this, venture capitalist Chamath Palihapitiya approaches the situation with caution.
Chamath Palihapitiya has won both BTC and USD.
Despite the war that has propelled the flagship cryptocurrency into the spotlight, Silicon Valley venture capitalist Chamath Palihapitiya believes Bitcoin (BTC) is the sole winner in the Russia-Ukraine dispute. Instead, he claims that ‘BTC and USD are both winning right now.’
BTC is separating itself as an institutional grade safe haven vs EVERY other crypto asset AND the US denominated assets are well bid vs assets in other currencies.
When BTC falls, other cryptos fall more. When US assets fall, other non-US denominated assets/currencies get smoked
— Chamath Palihapitiya (@chamath) March 7, 2022
Chamath’s remarks may be motivated by the fact that the US dollar has risen to its greatest level in over two years, while the Russian ruble has dropped to an all-time low versus the US dollar following Russia’s invasion of Ukraine.
The dollar index was up 0.869 percent as of Feb. 24, putting it on track for its highest daily percentage rise since March 2020, when the US markets were hit by the first wave of the COVID-19. The dollar rose to 97.740 versus a basket of major currencies, its highest level since June 30, 2020.
In comparison to other cryptocurrencies, the venture investor went on to claim that Bitcoin (BTC) is presenting itself as an institutional-grade safe haven, while US-dominated assets have risen to the top in comparison to assets in other currencies.
“When BTC falls, other cryptocurrencies fall even faster. Other non-US denominated assets/currencies get burnt when US assets collapse,” Chamath said.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.